Customer Facing Technologies

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Customer Facing Technologies
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Agenda

• Defining CRM
• Customer value
• CRM technologies
• eCRM
• Customization

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Strategic IT Framework
Business PartnersSuppliers, Distributors,
Resellers
Selling Chain Management
Logistics
Distribution
Production
Enterprise Resource Planning
BusinessIntelligence
EnterpriseApplicationIntegration
Employees
Administrative ContentHRMS / E-Procurement
Stakeholders
Finance/Accounting/AuditingManagement Control
Customer Relationship Management
Marketing
Sales
CustomerService
Selling Chain Management
Customers, Resellers
Source Kalakota and Robinson
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Customer Relationship Management

• CRM is a business strategy, not a specific
  software or hardware but it encompasses the
  technology and strategy needed to completely
  integrate your business in order to get a
  holistic view of the customer. (from CIO.com)

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80/20 Rule

Retention Zone
Selectivity Zone
KEY CUSTOMERS
COSTS
SUBSIDIZED CUSTOMERS
REVENUES
Often Biggest Customers Often
smallest
Source Dr. Jagdish Sheth
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Some Customers Are More Equal Than Others
Source PeppersRogers Group (1to1.com)
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Identify and Capitalize on Customer Differences

• Customers have different needs from a firm, and
  they represent different valuations to a firm
• The value of a customer determines how much time
  and investment should be allocated to that
  relationship
• Customer Life Time Value (LTV)
• Discounted stream of expected future profits (net
  of costs)
• Plus other benefits referrals, knowledge about
  customer tastes, help in designing new products

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Learning Relationship A Business Must Become a
One to One Enterprise

• Equation
• Customer expresses wants to the enterprise e.g.
  groceries
• Enterprise both meets expectations and remembers
  specifications
• Loyalty more convenient than non-loyalty for both
• Cost of switching customer will have to reteach
  a competitor
• Every interaction and feedback leads to more
  detailed knowledge of customers needs and
  tastes
• I know you. You tell me what you want. I
  provide it.
• I remember for next time.

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Customer Value Metrics

• Profit and Growth
• How do you define loyal customers?
• Profits from referrals?
• What expenses incentives are allocated to
  customer retention?
• Why do the customers defect?
• Are customer satisfaction data collected
  systematically, objectively and consistently?
• Are there listening posts for customer feedback?
• Ritz Carlton

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Customer Relationship Management (CRM)

• Definition processes and technologies that
  support coordinated customer interactions
  throughout all customer channels
• Customer Relationship Management helps companies
  understand, anticipate, and respond to their
  customers' needs
• By collecting and analyzing information across
  marketing, sales, and service
• By implementing the most appropriate customer
  interaction strategy, whether it's through the
  Web, telebusiness, field representatives, or
  partners
• Integrated sales, marketing, and service strategy
• use existing relationships to grow revenue
  (up-selling and cross-selling)
• use integrated information for excellent service
• introduce repeatable sales processes
• create new value and instill loyalty

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Customer Relationship Management

• Key themes
• Maximize the lifetime value of the customer
• Build a relationship with your customer acquire,
  retain, enhance
• CRM Functionality
• Profiling learn about customers needs and
  desires
• Customer Interactions remember what customers
  say they need
• Interface let customers show what works for
  them
• Products offer what customers need or version
  offer
• Service provide future service based on past
  customer interactions and purchases

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Customer Lifecycle Processes
CRM Mantra ETFS
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CRM software types

• Customer support (need to include call center
  technologies)
• Examples Clarify, Siebel, Vantive
• Marketing automation
• Examples Broadvision, Epiphany
• Sales force automation (SFA)
• Examples Siebel, Vantive, PeopleSoft

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CRM Benefits

• Faster response to customer inquiries
• Deeper knowledge of customers
• More marketing and/or cross-selling opportunities
  
• Employee empowerment
• Customer feedback may lead to new and improved
  products or services
• More one-to-one marketing
• Obtaining information that can be shared with the
  company's business partners.

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CRM Drawbacks

• Very difficult to integrate solutions
• High failure rates of 55-75 (at least for SFA)
• May require a significant shift in corporate
  culture

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eCRM
A Web-centric approach to synchronizing customer
relationships across communication channels,
business functions, and audiences.
Forrester Research
Synchronization
eCRM
Web
CRM
Sales force automationMarketing
automationContact centerAnalytical tools
anddata warehouses
Click-stream trackingPersonalization
rulesSelf-service
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Why is eCRM Important?

• Rapid convergence of eBusiness and traditional
  CRM is the main driver of eCRM applications
• Sample eCRM functions
• Attract customers (eMarketing)
• One-to-one marketing and eSales (content
  management, personalization, configurators, and
  collaboration tools)
• Create satisfied buyers (supply-chain execution)
• Cross-sell and up-sell (analytical applications)
• eCRM vs CRM
• Focus on extended enterprise
• Customer controls the relationship
• Relationship is outwardly focused on customer
• Deeper relationship

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How Does It Work?
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How Does It Work (2)?
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How Does It Work (3)?
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Advantages for Site

• Targeted marketing
• Enable shopping carts
• Prevent banner ad burnout
• Customized promotions
• Cross selling and promotions
• Test banner advertising effectiveness
• Consumer-tailored content
• Synergies with other web sites
• Collect and resell consumer data

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Issues for Consumer

• Privacy, privacy, privacy!
• The right to be left alone
• No user awareness of being observed
• "Cookie Chomping" and web washer software
• Network computer may lack read/write capabilities
  
• Monitors browsers and not users
• Does not work in multi-user environment

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Amazon Customization

• Greet return customers by name
• Recommendations
• Customers who bought this also bought
• Wish list
• E-mail alerts
• Page you made (based on recent activity)

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Permission-Style Email Works

• It works cheap, easy, and effective
• In 1999, 97M spent on email marketing (4.6B by
  2004)
• 40 billion permission-style email messages
• But 38.5 billion were "spam" email pitches
• Costs are low
• Email ads average to about 25 cents each
• Traditional direct-mail methodsfliers, coupon
  cards, and the likeaverage
• 50 cents to 2 a pop

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How Do you Generate Trust?

• Site privacy policy
• Post your policy up front
• Include info on use of all collected data
• Provide information on site security
• 3rd party certification
• Report card for each site www.verisign.com
• Some evaluate security and privacy policies
• Rely on customer surveys of business practices

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http//www.doubleclick.com/
http//www.doubleclick.com/